| Indiana                         | 37-1567871             |
|---------------------------------|------------------------|
| (State or other jurisdiction of | (I.R.S. Employer       |
| incorporation or organization)  | Identification Number) |

| (Check one): | Large Accelerated Filer o | Accelerated Filer o         |
|--------------|---------------------------|-----------------------------|
|         | Non-accelerated Filer o   | Smaller Reporting Company x |

----

|       |                                                                                                            |   | Page   |
|------------|-----------------------------------------------------------------------------------------------------------------|--------|--------|
| Part I     | Financial Information                                                                                           |   |   |
|       |                                                                                                            |   |   |
|       | Item 1. Financial Statements                                                                                    |   |   |
|       |                                                                                                            |   |   |
|       | Consolidated Balance Sheets as of March 31, 2011 and September 30, 2010 (unaudited)                             |   | 3      |
|       |                                                                                                            |   |   |
|       | Consolidated Statements of Income for the three months and six months ended March 31, 2011 and 2010 (unaudited) |   | 4      |
|       |                                                                                                            |   |   |
|       | Consolidated Statements of Cash Flows for the six months ended March 31, 2011 and 2010 (unaudited)              |   | 5      |
|       |                                                                                                            |   |   |
|       | Notes to Consolidated Financial Statements (unaudited)                                                          |   | 6-29   |
|       |                                                                                                            |   |   |
|       | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations             |   | 30-41  |
|       |                                                                                                            |   |   |
|       | Item 3. Quantitative and Qualitative Disclosures About Market Risk                                              |   | 42-43  |
|       |                                                                                                            |   |   |
|       | Item 4. Controls and Procedures                                                                                 |   | 44     |
|       |                                                                                                            |   |   |
| Part II    | Other Information                                                                                               |   |   |
|       |                                                                                                            |   |   |
|       | Item 1. Legal Proceedings                                                                                       |   | 45     |
|       |                                                                                                            |   |   |
|       | Item 1A. Risk Factors                                                                                           |   | 45     |
|       |                                                                                                            |   |   |
|       | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                             |   | 45     |
|       |                                                                                                            |   |   |
|       | Item 3. Defaults Upon Senior Securities                                                                         |   | 46     |
|       |                                                                                                            |   |   |
|       | Item 4. (Removed and Reserved)                                                                                  |   | 46     |
|       |                                                                                                            |   |   |
|       | Item 5. Other Information                                                                                       |   | 46     |
|       |                                                                                                            |   |   |
|       | Item 6. Exhibits                                                                                                |   | 46     |
|       |                                                                                                            |   |   |
| Signatures |                                                                                                            | 47     |

----

| PART I - FINANCIAL INFORMATION                       |
|------------------------------------------------------|
| FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS                          |
| (Unaudited)                                          |

|                                                  |   | March 31, |    |   | September 30, |   |
|-------------------------------------------------------|--------|-----------|---------|--------|---------------|--------|
| (In thousands, except share and per share data)       |   | 2011      |    |   | 2010          |   |
| ASSETS                                                |   |      |    |   |          |   |
| Cash and due from banks                               |   | $         | 5,158   |   |          | $      | 10,184 |   |
| Interest-bearing deposits with banks                  |   |      | 3,716   |   |          |   | 1,094 |   |
| Total cash and cash equivalents                       |   |      | 8,874   |   |          |   | 11,278 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Securities available for sale, at fair value          |   |      | 121,366 |   |          |   | 109,976 |   |
| Securities held to maturity                           |   |      | 2,940   |   |          |   | 3,929 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Loans held for sale                                   |   |      | 138     |   |          |   | 1,884 |   |
| Loans, net                                            |   |      | 341,059 |   |          |   | 343,615 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Federal Home Loan Bank stock, at cost                 |   |      | 4,049   |   |          |   | 4,170 |   |
| Premises and equipment                                |   |      | 10,107  |   |          |   | 9,492 |   |
| Foreclosed real estate                                |   |      | 1,345   |   |          |   | 1,331 |   |
| Accrued interest receivable:                          |   |      |    |   |          |   |   |   |
| Loans                                                 |   |      | 1,471   |   |          |   | 1,646 |   |
| Securities                                            |   |      | 909     |   |          |   | 746 |   |
| Cash surrender value of life insurance                |   |      | 8,383   |   |          |   | 8,234 |   |
| Goodwill                                              |   |      | 5,940   |   |          |   | 5,940 |   |
| Core deposit intangible                               |   |      | 2,300   |   |          |   | 2,447 |   |
| Other assets                                          |   |      | 3,908   |   |          |   | 3,754 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Total Assets                                          |   | $         | 512,789 |   |          | $      | 508,442 |   |
|                                                  |   |      |    |   |          |   |   |   |
| LIABILITIES                                           |   |      |    |   |          |   |   |   |
| Deposits:                                             |   |      |    |   |          |   |   |   |
| Noninterest-bearing                                   |   | $         | 30,716  |   |          | $      | 28,853 |   |
| Interest-bearing                                      |   |      | 338,275 |   |          |   | 337,308 |   |
| Total deposits                                        |   |      | 368,991 |   |          |   | 366,161 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Repurchase agreements                                 |   |      | 16,612  |   |          |   | 16,821 |   |
| Borrowings from Federal Home Loan Bank                |   |      | 68,463  |   |          |   | 67,159 |   |
| Accrued interest payable                              |   |      | 419     |   |          |   | 427 |   |
| Advance payments by borrowers for taxes and insurance |   |      | 271     |   |          |   | 252 |   |
| Accrued expenses and other liabilities                |   |      | 1,974   |   |          |   | 2,471 |   |
| Total Liabilities                                     |   |      | 456,730 |   |          |   | 453,291 |   |
|                                                  |   |      |    |   |          |   |   |   |
| STOCKHOLDERS' EQUITY                                  |   |      |    |   |          |   |   |   |
| Preferred stock of $.01 par value per share           |   |      |    |   |          |   |   |   |
| Authorized 1,000,000 shares; none issued              |   |      | -       |   |          |   | - |   |
| Common stock of $.01 par value per share              |   |      |    |   |          |   |   |   |
| Authorized 20,000,000 shares; issued 2,542,042 shares |   |      | 25      |   |          |   | 25 |   |
| Additional paid-in capital                            |   |      | 24,454  |   |          |   | 24,310 |   |
| Retained earnings - substantially restricted          |   |      | 33,957  |   |          |   | 31,889 |   |
| Accumulated other comprehensive income                |   |      | 2,105   |   |          |   | 2,959 |   |
| Unearned ESOP shares                                  |   |      | (1,416  | )      |          |   | (1,501 | ) |
| Unearned stock compensation                           |   |      | (1,072  | )      |          |   | (1,202 | ) |
| Less treasury stock, at cost - 173,097 shares         |   |      |    |   |          |   |   |   |
| (127,102 shares at September 30, 2010)                |   |      | (1,994  | )      |          |   | (1,329 | ) |
| Total Stockholders' Equity                            |   |      | 56,059  |   |          |   | 55,151 |   |
|                                                  |   |      |    |   |          |   |   |   |
| Total Liabilities and Stockholders' Equity            |   | $         | 512,789 |   |          | $      | 508,442 |   |

----

| PART I - FINANCIAL INFORMATION                       |
|------------------------------------------------------|
| FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF INCOME                    |
| (Unaudited)                                          |

|                                                        |   | Three Months Ended |   |   | Six Months Ended |   |
|-------------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                        |   | March 31,          |   |   | March 31,        |   |
| (In thousands, except share and per share data)             |   | 2011               |   |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |
| INTEREST INCOME                                             |   |               |   |   |             |   |   |   |   |   |   |   |
| Loans, including fees                                       |   | $                  | 5,079  |   |             | $      | 5,540 |   |   | $ | 10,333 |   |   | $ | 11,207 |   |
| Securities:                                                 |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                     |   |               | 1,107  |   |             |   | 875 |   |   |   | 2,153 |   |   |   | 1,642 |   |
| Tax-exempt                                                  |   |               | 185    |   |             |   | 93 |   |   |   | 354 |   |   |   | 231 |   |
| Dividend income                                             |   |               | 30     |   |             |   | 15 |   |   |   | 58 |   |   |   | 32 |   |
| Interest-bearing deposits with banks                        |   |               | 4      |   |             |   | 3 |   |   |   | 7 |   |   |   | 9 |   |
| Total interest income                                       |   |               | 6,405  |   |             |   | 6,526 |   |   |   | 12,905 |   |   |   | 13,121 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST EXPENSE                                            |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                    |   |               | 986    |   |             |   | 1,203 |   |   |   | 2,047 |   |   |   | 2,549 |   |
| Repurchase agreements                                       |   |               | 77     |   |             |   | 81 |   |   |   | 157 |   |   |   | 172 |   |
| Borrowings from Federal Home Loan Bank                      |   |               | 273    |   |             |   | 227 |   |   |   | 555 |   |   |   | 457 |   |
| Total interest expense                                      |   |               | 1,336  |   |             |   | 1,511 |   |   |   | 2,759 |   |   |   | 3,178 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                         |   |               | 5,069  |   |             |   | 5,015 |   |   |   | 10,146 |   |   |   | 9,943 |   |
| Provision for loan losses                                   |   |               | 287    |   |             |   | 588 |   |   |   | 639 |   |   |   | 946 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income after provision for loan losses         |   |               | 4,782  |   |             |   | 4,427 |   |   |   | 9,507 |   |   |   | 8,997 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| NONINTEREST INCOME                                          |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Service charges on deposit accounts                         |   |               | 313    |   |             |   | 368 |   |   |   | 674 |   |   |   | 779 |   |
| Net gain on sales of securities available for sale          |   |               | -      |   |             |   | - |   |   |   | 68 |   |   |   | - |   |
| Unrealized gain (loss) on derivative contract               |   |               | (12    | )      |             |   | (133 | ) |   |   | 33 |   |   |   | (72 | ) |
| Net gain on sales of mortgage loans                         |   |               | 33     |   |             |   | 34 |   |   |   | 139 |   |   |   | 43 |   |
| Increase in cash surrender value of life insurance          |   |               | 69     |   |             |   | 53 |   |   |   | 149 |   |   |   | 110 |   |
| Commission income                                           |   |               | 53     |   |             |   | 42 |   |   |   | 86 |   |   |   | 70 |   |
| Other income                                                |   |               | 174    |   |             |   | 173 |   |   |   | 335 |   |   |   | 332 |   |
| Total noninterest income                                    |   |               | 630    |   |             |   | 537 |   |   |   | 1,484 |   |   |   | 1,262 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| NONINTEREST EXPENSE                                         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Compensation and benefits                                   |   |               | 2,057  |   |             |   | 1,894 |   |   |   | 4,257 |   |   |   | 4,016 |   |
| Occupancy and equipment                                     |   |               | 453    |   |             |   | 552 |   |   |   | 898 |   |   |   | 1,084 |   |
| Data processing                                             |   |               | 270    |   |             |   | 497 |   |   |   | 555 |   |   |   | 733 |   |
| Advertising                                                 |   |               | 70     |   |             |   | 68 |   |   |   | 162 |   |   |   | 161 |   |
| Professional fees                                           |   |               | 153    |   |             |   | 210 |   |   |   | 273 |   |   |   | 324 |   |
| FDIC insurance premiums                                     |   |               | 149    |   |             |   | 132 |   |   |   | 283 |   |   |   | 282 |   |
| Net (gain) loss on foreclosed real estate                   |   |               | 190    |   |             |   | (5 | ) |   |   | 232 |   |   |   | 17 |   |
| Other operating expenses                                    |   |               | 691    |   |             |   | 695 |   |   |   | 1,411 |   |   |   | 1,391 |   |
| Total noninterest expense                                   |   |               | 4,033  |   |             |   | 4,043 |   |   |   | 8,071 |   |   |   | 8,008 |   |
| Income before income taxes                                  |   |               | 1,379  |   |             |   | 921 |   |   |   | 2,920 |   |   |   | 2,251 |   |
| Income tax expense                                          |   |               | 409    |   |             |   | 221 |   |   |   | 866 |   |   |   | 659 |   |
| Net Income                                                  |   | $                  | 970    |   |             | $      | 700 |   |   | $ | 2,054 |   |   | $ | 1,592 |   |
|                                                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX               |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on securities:                       |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains (losses) arising during the period |   | $                  | 777    |   |             | $      | 689 |   |   | $ | (809 | ) |   | $ | 891 |   |
| Less: reclassification adjustment                           |   |               | -      |   |             |   | - |   |   |   | (45 | ) |   |   | - |   |
| Other comprehensive income (loss)                           |   |               | 777    |   |             |   | 689 |   |   |   | (854 | ) |   |   | 891 |   |
| Comprehensive Income                                        |   | $                  | 1,747  |   |             | $      | 1,389 |   |   | $ | 1,200 |   |   | $ | 2,483 |   |
| Net Income per common share, basic                          |   | $                  | 0.46   |   |             | $      | 0.31 |   |   | $ | 0.96 |   |   | $ | 0.69 |   |
| Net Income per common share, diluted                        |   | $                  | 0.44   |   |             | $      | 0.31 |   |   | $ | 0.94 |   |   | $ | 0.69 |   |
| Dividends per common share                                  |   | $                  | -      |   |             | $      | - |   |   | $ | - |   |   | $ | 0.08 |   |

----

| PART I - FINANCIAL INFORMATION                       |
|------------------------------------------------------|
| FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                |
| (Unaudited)                                          |

|                                                                   |   | Six Months Ended |    |
|------------------------------------------------------------------------|--------|------------------|---------|
|                                                                   |   | March 31,        |    |
| (In thousands)                                                         |   | 2011             |    |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                   |   |             |    |   |   |   |
| Net income                                                             |   | $                | 2,054   |   |   | $ | 1,592 |   |
| Adjustments to reconcile net income to net cash provided               |   |             |    |   |   |   |   |   |
| by operating activities:                                               |   |             |    |   |   |   |   |   |
| Provision for loan losses                                              |   |             | 639     |   |   |   | 946 |   |
| Depreciation and amortization                                          |   |             | 435     |   |   |   | 581 |   |
| Amortization of premiums and accretion of discounts on securities, net |   |             | (83     | ) |   |   | (6 | ) |
| Mortgage loans originated for sale                                     |   |             | (8,296  | ) |   |   | (2,783 | ) |
| Proceeds on sale of mortgage loans                                     |   |             | 10,181  |   |   |   | 3,138 |   |
| Gain on sale of mortgage loans                                         |   |             | (139    | ) |   |   | (43 | ) |
| Net realized and unrealized (gain) loss on foreclosed real estate      |   |             | 183     |   |   |   | (101 | ) |
| Net gain on sales of securities available for sale                     |   |             | (68     | ) |   |   | - |   |
| Unrealized (gain) loss on derivative contract                          |   |             | (33     | ) |   |   | 72 |   |
| Increase in cash surrender value of life insurance                     |   |             | (149    | ) |   |   | (110 | ) |
| Deferred income taxes                                                  |   |             | 192     |   |   |   | (2,136 | ) |
| ESOP and stock compensation expense                                    |   |             | 357     |   |   |   | 233 |   |
| Decrease in accrued interest receivable                                |   |             | 12      |   |   |   | 73 |   |
| Decrease in accrued interest payable                                   |   |             | (8      | ) |   |   | (17 | ) |
| Change in other assets and liabilities, net                            |   |             | (348    | ) |   |   | 1,305 |   |
| Net Cash Provided By Operating Activities                              |   |             | 4,929   |   |   |   | 2,744 |   |
|                                                                   |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                   |   |             |    |   |   |   |   |   |
| Purchase of securities available for sale                              |   |             | (26,377 | ) |   |   | (33,508 | ) |
| Proceeds from sales of securities available for sale                   |   |             | 3,914   |   |   |   | 3,666 |   |
| Proceeds from maturities of securities available for sale              |   |             | 4,156   |   |   |   | 14,573 |   |
| Principal collected on mortgage-backed securities                      |   |             | 6,756   |   |   |   | 6,543 |   |
| Net (increase) decrease in loans                                       |   |             | 1,257   |   |   |   | (1,831 | ) |
| Proceeds from redemption of Federal Home Loan Bank stock               |   |             | 121     |   |   |   | - |   |
| Investment in cash surrender value of life insurance                   |   |             | -       |   |   |   | (1,200 | ) |
| Proceeds from sale of foreclosed real estate                           |   |             | 464     |   |   |   | 736 |   |
| Purchase of premises and equipment                                     |   |             | (903    | ) |   |   | (219 | ) |
| Net Cash Used In Investing Activities                                  |   |             | (10,612 | ) |   |   | (11,240 | ) |
|                                                                   |   |             |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                   |   |             |    |   |   |   |   |   |
| Net increase in deposits                                               |   |             | 2,830   |   |   |   | 11,241 |   |
| Net decrease in federal funds purchased                                |   |             | -       |   |   |   | (1,180 | ) |
| Net decrease in repurchase agreements                                  |   |             | (209    | ) |   |   | (209 | ) |
| Increase (decrease) in Federal Home Loan Bank line of credit           |   |             | (1,633  | ) |   |   | 227 |   |
| Proceeds from Federal Home Loan Bank advances                          |   |             | 55,000  |   |   |   | 54,439 |   |
| Repayment of Federal Home Loan Bank advances                           |   |             | (52,063 | ) |   |   | (51,644 | ) |
| Net increase (decrease) in advance payments by borrowers               |   |             |    |   |   |   |   |   |
| for taxes and insurance                                                |   |             | 19      |   |   |   | (140 | ) |
| Purchase of treasury stock                                             |   |             | (665    | ) |   |   | (1,329 | ) |
| Dividends paid                                                         |   |             | -       |   |   |   | (193 | ) |
| Net Cash Provided By Financing Activities                              |   |             | 3,279   |   |   |   | 11,212 |   |
|                                                                   |   |             |    |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                   |   |             | (2,404  | ) |   |   | 2,716 |   |
|                                                                   |   |             |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                       |   |             | 11,278  |   |   |   | 10,404 |   |
|                                                                   |   |             |    |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                             |   | $                | 8,874   |   |   | $ | 13,120 |   |

----

----

|                                |   | Amortized Cost |    |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|-------------------------------------|--------|----------------|---------|--------|------------------------|--------|--------|------------------------------|--------|--------|------------|--------|
|                                |   | (In thousands) |    |
| March 31, 2011:                     |   |           |    |   |                   |   |   |                         |   |   |       |   |
| Securities available for sale:      |   |           |    |   |                   |   |   |                         |   |   |       |   |
| Agency bonds and notes              |   | $              | 33,779  |   |                   | $      | 38     |                         |   | $      | 382        |   |   | $ | 33,435 |   |
| Agency mortgage-backed              |   |           | 10,685  |   |                   |   | 256    |                         |   |   | 42         |   |   |   | 10,899 |   |
| Agency CMO                          |   |           | 22,547  |   |                   |   | 188    |                         |   |   | 86         |   |   |   | 22,649 |   |
| Privately-issued CMO                |   |           | 10,124  |   |                   |   | 3,061  |                         |   |   | 67         |   |   |   | 13,118 |   |
| Municipal                           |   |           | 40,786  |   |                   |   | 881    |                         |   |   | 491        |   |   |   | 41,176 |   |
| Subtotal – debt securities    |   |           | 117,921 |   |                   |   | 4,424  |                         |   |   | 1,068      |   |   |   | 121,277 |   |
| Equity securities                   |   |           | -       |   |                   |   | 89     |                         |   |   | -          |   |   |   | 89 |   |
| Total securities available for sale |   | $              | 117,921 |   |                   | $      | 4,513  |                         |   | $      | 1,068      |   |   | $ | 121,366 |   |
| Securities held to maturity:        |   |           |    |   |                   |   |   |                         |   |   |       |   |   |   |   |   |
| Agency mortgage-backed              |   | $              | 2,940   |   |                   | $      | 182    |                         |   | $      | -          |   |   | $ | 3,122 |   |
| Total securities held to maturity   |   | $              | 2,940   |   |                   | $      | 182    |                         |   | $      | -          |   |   | $ | 3,122 |   |
|                                |   |           |    |   |                   |   |   |                         |   |   |       |   |   |   |   |   |
| September 30, 2010:                 |   |           |    |   |                   |   |   |                         |   |   |       |   |   |   |   |   |
| Securities available for sale:      |   |           |    |   |                   |   |   |                         |   |   |       |   |   |   |   |   |
| Agency bonds and notes              |   | $              | 25,510  |   |                   | $      | 196    |                         |   | $      | 1          |   |   | $ | 25,705 |   |
| Agency mortgage-backed              |   |           | 13,944  |   |                   |   | 226    |                         |   |   | 29         |   |   |   | 14,141 |   |
| Agency CMO                          |   |           | 22,325  |   |                   |   | 224    |                         |   |   | 61         |   |   |   | 22,488 |   |
| Privately-issued CMO                |   |           | 10,342  |   |                   |   | 2,418  |                         |   |   | 72         |   |   |   | 12,688 |   |
| Municipal                           |   |           | 33,109  |   |                   |   | 1,920  |                         |   |   | 152        |   |   |   | 34,877 |   |
| Subtotal – debt securities    |   |           | 105,230 |   |                   |   | 4,984  |                         |   |   | 315        |   |   |   | 109,899 |   |
| Equity securities                   |   |           | -       |   |                   |   | 77     |                         |   |   | -          |   |   |   | 77 |   |
| Total securities available for sale |   | $              | 105,230 |   |                   | $      | 5,061  |                         |   | $      | 315        |   |   | $ | 109,976 |   |
| Securities held to maturity:        |   |           |    |   |                   |   |   |                         |   |   |       |   |   |   |   |   |
| Agency mortgage-backed              |   | $              | 3,625   |   |                   | $      | 211    |                         |   | $      | -          |   |   | $ | 3,836 |   |
| Municipal                           |   |           | 304     |   |                   |   | 4      |                         |   |   | -          |   |   |   | 308 |   |
| Total securities held to maturity   |   | $              | 3,929   |   |                   | $      | 215    |                         |   | $      | -          |   |   | $ | 4,144 |   |

----

|                                   |   | Available for Sale |    |   | Held to Maturity |   |
|----------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                   |   | Amortized Cost     |    |   | Fair Value       |   |   | Amortized Cost |   |   | Fair Value |   |
|                                   |   | (In thousands)     |    |
| Due within one year                    |   | $                  | 392     |   |             | $      | 393 |   |   | $ | - |   |   | $ | - |   |
| Due after one year through five years  |   |               | 3,672   |   |             |   | 3,684 |   |   |   | - |   |   |   | - |   |
| Due after five years through ten years |   |               | 8,433   |   |             |   | 8,611 |   |   |   | - |   |   |   | - |   |
| Due after ten years                    |   |               | 62,068  |   |             |   | 61,923 |   |   |   | - |   |   |   | - |   |
|                                   |   |               | 74,565  |   |             |   | 74,611 |   |   |   | - |   |   |   | - |   |
|                                   |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities                      |   |               | -       |   |             |   | 89 |   |   |   | - |   |   |   | - |   |
| CMO                                    |   |               | 32,671  |   |             |   | 35,767 |   |   |   | - |   |   |   | - |   |
| Mortgage-backed securities             |   |               | 10,685  |   |             |   | 10,899 |   |   |   | 2,940 |   |   |   | 3,122 |   |
|                                   |   | $                  | 117,921 |   |             | $      | 121,366 |   |   | $ | 2,940 |   |   | $ | 3,122 |   |

----

|                                              |   | Number of Investment Positions |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
|---------------------------------------------------|--------|--------------------------------|--------|--------|------------|--------|--------|-------------------------|--------|
|                                              |   | (Dollars in thousands)         |   |
| Securities available for sale:                    |   |                           |   |   |       |   |   |                    |   |
|                                              |   |                           |   |   |       |   |   |                    |   |
| Continuous loss position less than twelve months: |   |                           |   |   |       |   |   |
| Agency bonds and notes                            |   |                           | 17     |   |       | $      | 24,697 |                    |   | $ | 382 |   |
| Agency mortgage-backed                            |   |                           | 7      |   |       |   | 5,324  |                    |   |   | 42 |   |
| Agency CMO                                        |   |                           | 4      |   |       |   | 4,675  |                    |   |   | 86 |   |
| Privately-issued CMO                              |   |                           | 2      |   |       |   | 845    |                    |   |   | 10 |   |
| Municipal bonds                                   |   |                           | 18     |   |       |   | 11,076 |                    |   |   | 362 |   |
|                                              |   |                           | 48     |   |       |   | 46,617 |                    |   |   | 882 |   |
| Continuous loss position more than twelve months: |   |                           |   |   |       |   |   |                    |   |
| Privately-issued CMO                              |   |                           | 3      |   |       |   | 193    |                    |   |   | 57 |   |
| Municipal bonds                                   |   |                           | 1      |   |       |   | 1,821  |                    |   |   | 129 |   |
|                                              |   |                           | 4      |   |       |   | 2,014  |                    |   |   | 186 |   |
| Total securities available for sale               |   |                           | 52     |   |       | $      | 48,631 |                    |   | $ | 1,068 |   |

----

----

|                                          |   | March 31,      |    |   | September 30, |   |
|-----------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                          |   | 2011           |    |   | 2010          |   |
|                                          |   | (In thousands) |    |
| Real estate mortgage:                         |   |           |    |   |          |   |
| 1-4 family residential                        |   | $              | 166,411 |   |          | $      | 172,007 |   |
| Multi-family residential                      |   |           | 23,382  |   |          |   | 20,360 |   |
| Commercial                                    |   |           | 59,989  |   |          |   | 53,869 |   |
| Residential construction                      |   |           | 14,944  |   |          |   | 15,867 |   |
| Commercial construction                       |   |           | 9,044   |   |          |   | 9,851 |   |
| Land and land development                     |   |           | 9,729   |   |          |   | 9,076 |   |
| Commercial business loans                     |   |           | 29,509  |   |          |   | 30,905 |   |
| Consumer:                                     |   |           |    |   |          |   |   |   |
| Home equity loans                             |   |           | 15,715  |   |          |   | 16,335 |   |
| Auto loans                                    |   |           | 11,165  |   |          |   | 13,405 |   |
| Other consumer loans                          |   |           | 6,474   |   |          |   | 7,030 |   |
| Gross loans                                   |   |           | 346,362 |   |          |   | 348,705 |   |
|                                          |   |           |    |   |          |   |   |   |
| Deferred loan origination fees and costs, net |   |           | 676     |   |          |   | 778 |   |
| Undisbursed portion of loans in process       |   |           | (1,822  | )      |          |   | (2,057 | ) |
| Allowance for loan losses                     |   |           | (4,157  | )      |          |   | (3,811 | ) |
|                                          |   |           |    |   |          |   |   |   |
| Loans, net                                    |   | $              | 341,059 |   |          | $      | 343,615 |   |

----

|                                                      |   | ResidentialReal Estate |    |   | CommercialReal Estate |   |   | Multifamily |   |   | Construction |   |   | Land & LandDevelopment |   |   | CommercialBusiness |   |   | Consumer |   |   | Total  |   |
|-----------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|--------|-------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|--------------------|--------|--------|----------|--------|--------|--------|--------|
|                                                      |   | (In thousands)         |    |
| Recorded Investment in Loans:                             |   |                   |    |   |                  |   |   |        |   |   |
| Principal loan balance                                    |   | $                      | 166,411 |   |                  | $      | 59,989 |        |   | $      | 23,382       |   |   | $                          | 22,166 |   |               | $      | 9,729  |     |   | $      | 29,509 |   |   | $ | 33,354 |   |   | $ | 344,540 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued interest receivable                               |   |                   | 686     |   |                  |   | 266    |        |   |   | 89           |   |   |                       | 99     |   |               |   | 40     |     |   |   | 160    |   |   |   | 131 |   |   |   | 1,471 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net deferred loan origination fees and costs              |   |                   | 659     |   |                  |   | (19    | )           |   |   | (5           | )      |   |                       | 46     |   |               |   | (13    | )        |   |   | (33    | )      |   |   | 41 |   |   |   | 676 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded investment in loans                              |   | $                      | 167,756 |   |                  | $      | 60,236 |        |   | $      | 23,466       |   |   | $                          | 22,311 |   |               | $      | 9,756  |     |   | $      | 29,636 |   |   | $ | 33,526 |   |   | $ | 346,687 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Recorded Investment in Loans as Evaluated for Impairment: |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually evaluated for impairment                     |   | $                      | 3,081   |   |                  | $      | 1,883  |        |   | $      | 32           |   |   | $                          | 763    |   |               | $      | 397    |     |   | $      | 145    |   |   | $ | 351 |   |   | $ | 6,652 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment                     |   |                   | 163,911 |   |                  |   | 57,792 |        |   |   | 23,434       |   |   |                       | 21,499 |   |               |   | 9,359  |     |   |   | 29,491 |   |   |   | 33,133 |   |   |   | 338,619 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired with deteriorated credit quality                 |   |                   | 764     |   |                  |   | 561    |        |   |   | -            |   |   |                       | 49     |   |               |   | -      |     |   |   | -      |   |   |   | 42 |   |   |   | 1,416 |   |
|                                                      |   |                   |    |   |                  |   |   |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                            |   | $                      | 167,756 |   |                  | $      | 60,236 |        |   | $      | 23,466       |   |   | $                          | 22,311 |   |               | $      | 9,756  |     |   | $      | 29,636 |   |   | $ | 33,526 |   |   | $ | 346,687 |   |

----

|                                                                            |   | ResidentialReal Estate |    |   | CommercialReal Estate |   |    | Multifamily |   |   | Construction |   |   | Land & LandDevelopment |   |   | CommercialBusiness |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
|---------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|---------|-------------|--------|--------|--------------|--------|--------|----------------------------|--------|--------|--------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
|                                                                            |   | (In thousands)         |    |
| Changes in Allowance for Loan Losses for the three-months ended March 31, 2011: |   |
| Beginning balance                                                               |   | $                      | 1,203   |   |                  | $      | 896     |        |   | $      | 550          |   |   | $                          | 133    |   |               | $      | 29     |     |   | $      | 787         |   |   | $      | 361    |   |   | $ | - |   |   | $ | 3,959 |   |
| Provisions                                                                      |   |                   | 44      |   |                  |   | (16     | )           |   |   | 4            |   |   |                       | 12     |   |               |   | 8      |     |   |   | 223         |   |   |   | 12     |   |   |   | - |   |   |   | 287 |   |
| Charge-offs                                                                     |   |                   | (24     | )      |                  |   | -       |        |   |   | -            |   |   |                       | -      |   |               |   | -      |     |   |   | (53         | )      |   |   | (42    | ) |   |   | - |   |   |   | (119 | ) |
| Recoveries                                                                      |   |                   | 13      |   |                  |   | -       |        |   |   | -            |   |   |                       | -      |   |               |   | -      |     |   |   | 4           |   |   |   | 13     |   |   |   | - |   |   |   | 30 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                                  |   | $                      | 1,236   |   |                  | $      | 880     |        |   | $      | 554          |   |   | $                          | 145    |   |               | $      | 37     |     |   | $      | 961         |   |   | $      | 344    |   |   | $ | - |   |   | $ | 4,157 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in Allowance for Loan Losses for the six-months ended March 31, 2011:   |   |
| Beginning balance                                                               |   | $                      | 1,242   |   |                  | $      | 600     |        |   | $      | 369          |   |   | $                          | 218    |   |               | $      | 62     |     |   | $      | 891         |   |   | $      | 429    |   |   | $ | - |   |   | $ | 3,811 |   |
| Provisions                                                                      |   |                   | 218     |   |                  |   | 285     |        |   |   | 185          |   |   |                       | (65    | )      |               |   | (25    | )        |   |   | 62          |   |   |   | (21    | ) |   |   | - |   |   |   | 639 |   |
| Charge-offs                                                                     |   |                   | (237    | )      |                  |   | (5      | )           |   |   | -            |   |   |                       | (8     | )      |               |   | -      |     |   |   | (53         | )      |   |   | (94    | ) |   |   | - |   |   |   | (397 | ) |
| Recoveries                                                                      |   |                   | 13      |   |                  |   | -       |        |   |   | -            |   |   |                       | -      |   |               |   | -      |     |   |   | 61          |   |   |   | 30     |   |   |   | - |   |   |   | 104 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                                  |   | $                      | 1,236   |   |                  | $      | 880     |        |   | $      | 554          |   |   | $                          | 145    |   |               | $      | 37     |     |   | $      | 961         |   |   | $      | 344    |   |   | $ | - |   |   | $ | 4,157 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Allowance Balance Attributable to Loans:                                 |   |
| Individually evaluated for impairment                                           |   | $                      | 70      |   |                  | $      | 249     |        |   | $      | -            |   |   | $                          | 21     |   |               | $      | -      |     |   | $      | -           |   |   | $      | 31     |   |   | $ | - |   |   | $ | 371 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Collectively evaluated for impairment                                           |   |                   | 1,166   |   |                  |   | 631     |        |   |   | 554          |   |   |                       | 124    |   |               |   | 37     |     |   |   | 961         |   |   |   | 313    |   |   |   | - |   |   |   | 3,786 |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired with deteriorated credit quality                                       |   |                   |  - |   |                  |   |  - |        |   |   |  -      |   |   |                       | -      |   |               |   | -      |     |   |   |  -     |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|                                                                            |   |                   |    |   |                  |   |    |        |   |   |         |   |   |                       |   |   |               |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                                  |   | $                      | 1,236   |   |                  | $      | 880     |        |   | $      | 554          |   |   | $                          | 145    |   |               | $      | 37     |     |   | $      | 961         |   |   | $      | 344    |   |   | $ | - |   |   | $ | 4,157 |   |

----

|                                      |   | At March 31, 2011  |   |   | Three Months Ended March 31, 2011 |   |   | Six Months Ended March 31, 2011 |   |
|-------------------------------------------|--------|--------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
|                                      |   | RecordedInvestment |   |   | Unpaid Principal Balance          |   |   | Related Allowance               |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |   | Interest RecognizedCash-Method |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |   | Interest RecognizedCash-Method |   |
|                                      |   | (In thousands)     |   |
| Loans with no related allowance recorded: |   |               |   |   |                              |   |   |                            |   |   |   |   |   |
| Residential real estate                   |   | $                  | 2,730  |   |                              | $      | 2,708  |                            |   | $ | - |   |   | $ | 2,533 |   |   | $ | 7 |   |   | $ | 3 |   |   | $ | 2,475 |   |   | $ | 16 |   |   | $ | 13 |   |
| Commercial real estate                    |   |               | 1,406  |   |                              |   | 1,407  |                            |   |   | - |   |   |   | 1,196 |   |   |   | - |   |   |   | 1 |   |   |   | 1,187 |   |   |   | 2 |   |   |   | 1 |   |
| Multifamily                               |   |               | 32     |   |                              |   | 31     |                            |   |   | - |   |   |   | 16 |   |   |   | 1 |   |   |   | - |   |   |   | 11 |   |   |   | 1 |   |   |   | - |   |
| Construction                              |   |               | 742    |   |                              |   | 735    |                            |   |   | - |   |   |   | 548 |   |   |   | 4 |   |   |   | 1 |   |   |   | 572 |   |   |   | 5 |   |   |   | 1 |   |
| Land and land development                 |   |               | 397    |   |                              |   | 397    |                            |   |   | - |   |   |   | 397 |   |   |   | - |   |   |   | - |   |   |   | 265 |   |   |   | - |   |   |   | - |   |
| Commercial business                       |   |               | 145    |   |                              |   | 143    |                            |   |   | - |   |   |   | 154 |   |   |   | 2 |   |   |   | 1 |   |   |   | 217 |   |   |   | 3 |   |   |   | 2 |   |
| Consumer                                  |   |               | 256    |   |                              |   | 256    |                            |   |   | - |   |   |   | 235 |   |   |   | 1 |   |   |   | - |   |   |   | 247 |   |   |   | 2 |   |   |   | 1 |   |
|                                      |   | $                  | 5,708  |   |                              | $      | 5,677  |                            |   | $ | - |   |   | $ | 5,079 |   |   | $ | 15 |   |   | $ | 6 |   |   | $ | 4,974 |   |   | $ | 29 |   |   | $ | 18 |   |
|                                      |   |               |   |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans with an allowance recorded:         |   |               |   |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |
| Residential real estate                   |   | $                  | 351    |   |                              | $      | 350    |                            |   | $ | 70 |   |   | $ | 345 |   |   | $ | - |   |   | $ | - |   |   | $ | 552 |   |   | $ | - |   |   | $ | - |   |
| Commercial real estate                    |   |               | 477    |   |                              |   | 477    |                            |   |   | 249 |   |   |   | 486 |   |   |   | - |   |   |   | - |   |   |   | 324 |   |   |   | - |   |   |   | - |   |
| Multifamily                               |   |               | -      |   |                              |   | -      |                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction                              |   |               | 21     |   |                              |   | 21     |                            |   |   | 21 |   |   |   | 140 |   |   |   | - |   |   |   | - |   |   |   | 140 |   |   |   | - |   |   |   | - |   |
| Land and land development                 |   |               | -      |   |                              |   | -      |                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial business                       |   |               | -      |   |                              |   | -      |                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer                                  |   |               | 95     |   |                              |   | 94     |                            |   |   | 31 |   |   |   | 98 |   |   |   | - |   |   |   | - |   |   |   | 97 |   |   |   | - |   |   |   | - |   |
|                                      |   | $                  | 944    |   |                              | $      | 942    |                            |   | $ | 371 |   |   | $ | 1,069 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,113 |   |   | $ | - |   |   | $ | - |   |
|                                      |   |               |   |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                    |   |               |   |   |                              |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                   |   | $                  | 3,081  |   |                              | $      | 3,058  |                            |   | $ | 70 |   |   | $ | 2,878 |   |   | $ | 7 |   |   | $ | 3 |   |   | $ | 3,027 |   |   | $ | 16 |   |   | $ | 13 |   |
| Commercial real estate                    |   |               | 1,883  |   |                              |   | 1,884  |                            |   |   | 249 |   |   |   | 1,682 |   |   |   | - |   |   |   | 1 |   |   |   | 1,511 |   |   |   | 2 |   |   |   | 1 |   |
| Multifamily                               |   |               | 32     |   |                              |   | 31     |                            |   |   | - |   |   |   | 16 |   |   |   | 1 |   |   |   | - |   |   |   | 11 |   |   |   | 1 |   |   |   | - |   |
| Construction                              |   |               | 763    |   |                              |   | 756    |                            |   |   | 21 |   |   |   | 688 |   |   |   | 4 |   |   |   | 1 |   |   |   | 712 |   |   |   | 5 |   |   |   | 1 |   |
| Land and land development                 |   |               | 397    |   |                              |   | 397    |                            |   |   | - |   |   |   | 397 |   |   |   | - |   |   |   | - |   |   |   | 265 |   |   |   | - |   |   |   | - |   |
| Commercial business                       |   |               | 145    |   |                              |   | 143    |                            |   |   | - - |   |   |   | 154 |   |   |   | 2 |   |   |   | 1 |   |   |   | 217 |   |   |   | 3 |   |   |   | 2 |   |
| Consumer                                  |   |               | 351    |   |                              |   | 350    |                            |   |   | 31 |   |   |   | 333 |   |   |   | 1 |   |   |   | - |   |   |   | 344 |   |   |   | 2 |   |   |   | 1 |   |
|                                      |   | $                  | 6,652  |   |                              | $      | 6,619  |                            |   | $ | 371 |   |   | $ | 6,148 |   |   | $ | 15 |   |   | $ | 6 |   |   | $ | 6,087 |   |   | $ | 29 |   |   | $ | 18 |   |

----

|                      |   |  NonaccrualLoans |    |   | Loans 90+ DaysPast DueStill Accruing |   |    | Total Nonperforming Loans |   |
|---------------------------|--------|-----------------------|---------|--------|--------------------------------------|--------|---------|---------------------------|--------|
|                      |   | (In thousands)        |    |
|                      |   |                  |    |   |                                 |   |    |                      |   |
| Residential real estate   |   | $                     | 2,535   |   |                                 | $      | 546     |                      |   | $ | 3,081 |   |
| Commercial real estate    |   |                  | 1,883   |   |                                 |   | -  |                      |   |   | 1,883 |   |
| Multifamily               |   |                  | -  |   |                                 |   | 32      |                      |   |   | 32 |   |
| Construction              |   |                  | 496     |   |                                 |   | 267     |                      |   |   | 763 |   |
| Land and land development |   |                  | 397     |   |                                 |   | -  |                      |   |   | 397 |   |
| Commercial business       |   |                  | 44      |   |                                 |   | 101     |                      |   |   | 145 |   |
| Consumer                  |   |                  | 295     |   |                                 |   | 56      |                      |   |   | 351 |   |
|    Total   |   | $                     | 5,650   |   |                                 | $      | 1,002   |                      |   | $ | 6,652 |   |

|                      |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | 90 +DaysPast Due |   |   |  TotalPast Due |   |   |   Current |   |   |  TotalLoans |   |
|---------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|------------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|------------------|--------|
|                      |   | (In thousands)     |   |
| Residential real estate   |   | $                  | 7,205  |   |               | $      | 120    |             |   | $      | 2,147               |   |   | $                   | 9,472  |   |             | $      | 158,284 |   |   | $ | 167,756 |   |
| Commercial real estate    |   |               | 1,078  |   |               |   | 141    |             |   |   | 1,574               |   |   |                | 2,793  |   |             |   | 57,443 |   |   |   | 60,236 |   |
| Multifamily               |   |               | -      |   |               |   | -      |             |   |   | 32                  |   |   |                | 32     |   |             |   | 23,434 |   |   |   | 23,466 |   |
| Construction              |   |               | 54     |   |               |   | -      |             |   |   | 490                 |   |   |                | 544    |   |             |   | 21,767 |   |   |   | 22,311 |   |
| Land and land development |   |               | -      |   |               |   | -      |             |   |   | 397                 |   |   |                | 397    |   |             |   | 9,359 |   |   |   | 9,756 |   |
| Commercial business       |   |               | 49     |   |               |   | 23     |             |   |   | 115                 |   |   |                | 187    |   |             |   | 29,449 |   |   |   | 29,636 |   |
| Consumer                  |   |               | 542    |   |               |   | 21     |             |   |   | 134                 |   |   |                | 697    |   |             |   | 32,829 |   |   |   | 33,526 |   |
|    Total   |   | $                  | 8,928  |   |               | $      | 305    |             |   | $      | 4,889               |   |   | $                   | 14,122 |   |             | $      | 332,565 |   |   | $ | 346,687 |   |

----

|            |   | ResidentialReal Estate |    |   | CommercialReal Estate |   |   | Multi-family |   |   | Construction |   |   | Land and LandDevelopment |   |   | CommercialBusiness |   |   | Consumer |   |   | Total  |   |
|-----------------|--------|------------------------|---------|--------|-----------------------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|----------|--------|--------|--------|--------|
|            |   | (In thousands)         |    |
| Pass            |   | $                      | 156,215 |   |                  | $      | 54,606 |         |   | $      | 21,153       |   |   | $                        | 20,963 |   |               | $      | 8,932  |     |   | $      | 28,245 |   |   | $ | 32,803 |   |   | $ | 322,917 |   |
| Special Mention |   |                   | 1,162   |   |                  |   | 2,999  |         |   |   | 331          |   |   |                     | 428    |   |               |   | 427    |     |   |   | 1,161  |   |   |   | 61 |   |   |   | 6,569 |   |
| Substandard     |   |                   | 9,554   |   |                  |   | 2,154  |         |   |   | 1,982        |   |   |                     | 850    |   |               |   | 397    |     |   |   | 216    |   |   |   | 576 |   |   |   | 15,729 |   |
| Doubtful        |   |                   | 825     |   |                  |   | 477    |         |   |   | -            |   |   |                     | 70     |   |               |   | -      |     |   |   | 14     |   |   |   | 86 |   |   |   | 1,472 |   |
| Loss            |   |                   | -       |   |                  |   | -      |         |   |   | -            |   |   |                     | -      |   |               |   | -      |     |   |   | -      |   |   |   | - |   |   |   | - |   |
| Total           |   | $                      | 167,756 |   |                  | $      | 60,236 |         |   | $      | 23,466       |   |   | $                        | 22,311 |   |               | $      | 9,756  |     |   | $      | 29,636 |   |   | $ | 33,526 |   |   | $ | 346,687 |   |

----

|                                                              |   | Three Months Ended March 31,                  |      | Six Months Ended March 31, |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------|-----------|----------------------------|--------|
|                                                              |   | 2011                                          |      |                       | 2010   |   | 2011 |   |   | 2010 |   |
|                                                              |   | (Dollars in thousands, except per share data) |      |
|                                                              |   |                                          |      |
| Basic:                                                            |   |                                          |      |                       |   |   |   |   |   |   |   |   |
| Earnings:                                                         |   |                                          |      |                       |   |   |   |   |   |   |   |   |
| Net income                                                        |   | $                                             | 970       |                       |   | $ | 700 |   |   | $ | 2,054 |   |   | $ | 1,592 |   |
|                                                              |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares:                                                           |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                        |   |                                          | 2,127,440 |                       |   |   | 2,255,803 |   |   |   | 2,142,246 |   |   |   | 2,302,606 |   |
|                                                              |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share, basic                                |   | $                                             | 0.46      |                       |   | $ | 0.31 |   |   | $ | 0.96 |   |   | $ | 0.69 |   |
|                                                              |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                          |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings:                                                         |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                        |   | $                                             | 970       |                       |   | $ | 700 |   |   | $ | 2,054 |   |   | $ | 1,592 |   |
|                                                              |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares:                                                           |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                        |   |                                          | 2,127,440 |                       |   |   | 2,255,803 |   |   |   | 2,142,246 |   |   |   | 2,302,606 |   |
| Add: Dilutive effect of outstanding options                       |   |                                          | 39,937    |                       |   |   | - |   |   |   | 27,827 |   |   |   | - |   |
| Add: Dilutive effect of restricted stock                          |   |                                          | 17,869    |                       |   |   | - |   |   |   | 13,848 |   |   |   | - |   |
| Weighted average common  shares outstanding as adjusted |   |                                          | 2,185,246 |                       |   |   | 2,255,803 |   |   |   | 2,183,921 |   |   |   | 2,302,606 |   |
|                                                              |   |                                          |      |                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share, diluted                              |   | $                                             | 0.44      |                       |   | $ | 0.31 |   |   | $ | 0.94 |   |   | $ | 0.69 |   |

----

|                                                                                              |   | Three Months Ended March 31, |   |   | Six Months Ended March 31, |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                                                                              |   | 2011                         |   |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
|                                                                                              |   | (In thousands)               |   |
| Unrealized gains (losses) on securities:                                                          |   |                         |   |   |                       |   |   |   |   |   |   |   |
| Unrealized holding gains (losses) arising during the period                                       |   | $                            | 1,287  |   |                       | $      | 1,141 |   |   | $ | (1,225 | ) |   | $ | 1,475 |   |
| Income tax (expense) benefit                                                                      |   |                         | (510   | )      |                       |   | (452 | ) |   |   | 416 |   |   |   | (584 | ) |
| Net of tax amount                                                                                 |   |                         | 777    |   |                       |   | 689 |   |   |   | (809 | ) |   |   | 891 |   |
|                                                                                              |   |                         |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Less:  reclassification  adjustment for realized gains included in net income |   |                         | -      |   |                       |   | - |   |   |   | (68 | ) |   |   | - |   |
| Income tax expense                                                                                |   |                         | -      |   |                       |   | - |   |   |   | 23 |   |   |   | - |   |
| Net of tax amount                                                                                 |   |                         | -      |   |                       |   | - |   |   |   | (45 | ) |   |   | - |   |
| Other comprehensive income (loss), net of tax                                                     |   | $                            | 777    |   |                       | $      | 689 |   |   | $ | (854 | ) |   | $ | 891 |   |

|                                                                 |   | Six Months Ended March 31, |   |
|----------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                 |   | 2011                       |   |   | 2010 |   |
|                                                                 |   | (In thousands)             |   |
| Cash payments for:                                                   |   |                       |   |   |   |   |
| Interest                                                             |   | $                          | 3,326  |   |   | $ | 4,333 |   |
| Taxes                                                                |   |                       | 490    |   |   |   | 270 |   |
| Transfers from loans to foreclosed real estate                       |   |                       | 882    |   |   |   | 329 |   |
|                                                                 |   |                       |   |   |   |   |   |   |
| Proceeds from sales of foreclosed real estate financed through loans |   |                       | 221    |   |   |   | 403 |   |

----

| 7. | Fair Value Measurements and Disclosures about Fair Value of Financial Instruments |
|----|-----------------------------------------------------------------------------------|

|   | Level 1: | Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets.  A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2: | Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement.  Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                |   | Carrying Value |   |
|-------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                                                |   | (In thousands) |   |
| March 31, 2011:                                                                     |   |           |   |   |   |   |   |   |   |   |   |   |
| Assets Measured - Recurring Basis:                                                  |   |           |   |   |   |   |   |   |   |   |   |   |
|    Securities available for sale:                                    |   |           |   |   |   |   |   |   |   |   |   |   |
|      Agency bonds and notes                                |   | $              | -      |   |   | $ | 33,435 |   |   | $ | - |   |   | $ | 33,435 |   |
|      Agency mortgage-backed                                |   |           | -      |   |   |   | 10,899 |   |   |   | - |   |   |   | 10,899 |   |
|      Agency CMO                                            |   |           | -      |   |   |   | 22,649 |   |   |   | - |   |   |   | 22,649 |   |
|      Privately-issued CMO                                  |   |           | -      |   |   |   | 13,118 |   |   |   | - |   |   |   | 13,118 |   |
|      Municipal                                             |   |           | -      |   |   |   | 41,176 |   |   |   | - |   |   |   | 41,176 |   |
|      Equity securities                                     |   |           | 89     |   |   |   | - |   |   |   | - |   |   |   | 89 |   |
|         Total securities available for sale |   | $              | 89     |   |   | $ | 121,277 |   |   | $ | - |   |   | $ | 121,366 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest rate cap contract                                        |   | $              | -      |   |   | $ | 110 |   |   | $ | - |   |   | $ | 110 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets Measured - Nonrecurring Basis:                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Impaired loans                                                    |   |           | -      |   |   |   | 6,248 |   |   |   | - |   |   |   | 6,248 |   |
|    Loans held for sale                                               |   |           | -      |   |   |   | 138 |   |   |   | - |   |   |   | 138 |   |
|    Foreclosed real estate                                            |   |           | -      |   |   |   | 1,345 |   |   |   | - |   |   |   | 1,345 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 30, 2010:                                                                 |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets Measured - Recurring Basis:                                                  |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Securities available for sale:                                    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Agency bonds and notes                                |   | $              | -      |   |   | $ | 25,705 |   |   | $ | - |   |   | $ | 25,705 |   |
|      Agency mortgage-backed                                |   |           | -      |   |   |   | 14,141 |   |   |   | - |   |   |   | 14,141 |   |
|      Agency CMO                                            |   |           | -      |   |   |   | 22,488 |   |   |   | - |   |   |   | 22,488 |   |
|      Privately-issued CMO                                  |   |           | -      |   |   |   | 12,688 |   |   |   | - |   |   |   | 12,688 |   |
|      Municipal                                             |   |           | -      |   |   |   | 34,877 |   |   |   | - |   |   |   | 34,877 |   |
|      Equity securities                                     |   |           | 77     |   |   |   | - |   |   |   | - |   |   |   | 77 |   |
|         Total securities available for sale |   | $              | 77     |   |   | $ | 109,899 |   |   | $ | - |   |   | $ | 109,976 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest rate cap contract                                        |   | $              | -      |   |   | $ | 77 |   |   | $ | - |   |   | $ | 77 |   |
|                                                                                |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets Measured - Nonrecurring Basis:                                               |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Impaired loans                                                    |   |           | -      |   |   |   | 5,637 |   |   |   | - |   |   |   | 5,637 |   |
|    Loans held for sale                                               |   |           | -      |   |   |   | 1,884 |   |   |   | - |   |   |   | 1,884 |   |
|    Foreclosed real estate                                            |   |           | -      |   |   |   | 1,331 |   |   |   | - |   |   |   | 1,331 |   |

----

----

|                                                       |   | March 31, 2011  |    |   | September 30, 2010 |   |
|------------------------------------------------------------|--------|-----------------|---------|--------|--------------------|--------|
|                                                       |   | Carrying Amount |    |   | Fair Value         |   |   | Carrying Amount |   |   | Fair Value |   |
|                                                       |   | (In thousands)  |    |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |
| Financial assets:                                          |   |            |    |   |               |   |   |   |   |   |   |   |
| Cash and due from banks                                    |   | $               | 5,158   |   |               | $      | 5,158 |   |   | $ | 10,184 |   |   | $  | 10,184 |   |
| Interest-bearing deposits in banks                         |   |            | 3,716   |   |               |   | 3,716 |   |   |   | 1,094 |   |   |   | 1,094 |   |
| Securities available for sale                              |   |            | 121,366 |   |               |   | 121,366 |   |   |   | 109,976 |   |   |   | 109,976 |   |
| Securities held to maturity                                |   |            | 2,940   |   |               |   | 3,122 |   |   |   | 3,929 |   |   |   | 4,144 |   |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Loans, net                                                 |   |            | 341,059 |   |               |   | 354,016 |   |   |   | 343,615 |   |   |   | 357,508 |   |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale                                        |   |            | 138     |   |               |   | 138 |   |   |   | 1,884 |   |   |   | 1,884 |   |
| Federal Home Loan Bank stock                               |   |            | 4,049   |   |               |   | 4,049 |   |   |   | 4,170 |   |   |   | 4,170 |   |
| Accrued interest receivable                                |   |            | 2,380   |   |               |   | 2,380 |   |   |   | 2,392 |   |   |   | 2,392 |   |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                                     |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                   |   |            | 368,991 |   |               |   | 373,434 |   |   |   | 366,161 |   |   |   | 371,869 |   |
| Short-term repurchase agreements                           |   |            | 1,316   |   |               |   | 1,316 |   |   |   | 1,312 |   |   |   | 1,312 |   |
| Long-term repurchase agreements                            |   |            | 15,296  |   |               |   | 15,318 |   |   |   | 15,509 |   |   |   | 15,602 |   |
| Borrowings from Federal Home                               |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Loan Bank                                                  |   |            | 68,463  |   |               |   | 69,178 |   |   |   | 67,159 |   |   |   | 68,531 |   |
| Accrued interest payable                                   |   |            | 419     |   |               |   | 419 |   |   |   | 427 |   |   |   | 427 |   |
| Advance payments by borrowers for taxes and insurance      |   |            | 271     |   |               |   | 271 |   |   |   | 252 |   |   |   | 252 |   |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Derivative financial instruments included in other assets: |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate cap                                          |   |            | 110     |   |               |   | 110 |   |   |   | 77 |   |   |   | 77 |   |
|                                                       |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Off-balance-sheet financial instruments:                   |   |            |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Asset related to commitments to extend credit              |   |            | -       |   |               |   | 114 |   |   |   | - |   |   |   | 265 |   |

----

----

|                                          |   | (In thousands) |   |
|-----------------------------------------------|--------|----------------|--------|
| Net periodic benefit expense:                 |   |           |   |
| Service cost                                  |   | $              | -      |   |
| Interest cost on projected benefit obligation |   |           | 149    |   |
| Expected return on plan assets                |   |           | (72    | ) |
| Amortization of unrecognized gain             |   |           | (2     | ) |
|                                          |   |           |   |   |
| Net periodic benefit expense                  |   | $              | 75     |   |

----

| Allocated shares              |   |   | 61,764    |   |
|-------------------------------|--------|--------|-----------|--------|
| Unearned shares               |   |   | 141,599   |   |
| Total ESOP shares             |   |   | 203,363   |   |
|                          |   |   |      |   |
| Fair value of unearned shares |   | $      | 2,159,385 |   |

| 10. | Stock Based Compensation Plans |
|-----|--------------------------------|

----

|                         |   | NumberofShares |   |   | WeightedAverageGrant DateFair Value |   |
|------------------------------|--------|----------------|--------|--------|-------------------------------------|--------|
| Nonvested at October 1, 2010 |   |           | 98,092 |   |                                | $      | 13.25 |   |
| Granted                      |   |           | -      |   |                                |   | - |   |
| Vested                       |   |           | -      |   |                                |   | - |   |
| Forfeited                    |   |           | -      |   |                                |   | - |   |
|                         |   |           |   |   |                                |   |   |   |
| Nonvested at March 31, 2011  |   |           | 98,092 |   |                                | $      | 13.25 |   |

----

|                           |   | NumberofShares                                |    |   | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualTerm |   |   | AggregateIntrinsicValue |   |
|--------------------------------|--------|-----------------------------------------------|---------|--------|------------------------------|--------|--------|-----------------------------------------|--------|--------|-------------------------|--------|
|                           |   | (Dollars in thousands, except per share data) |    |
| Outstanding at October 1, 2010 |   |                                          | 254,204 |   |                         | $      | 13.25  |                                    |   |   |                    |   |   |   |
| Granted                        |   |                                          | -       |   |                         |   | -      |                                    |   |   |                    |   |   |   |
| Exercised                      |   |                                          | -       |   |                         |   | -      |                                    |   |   |                    |   |   |   |
| Forfeited or expired           |   |                                          | -       |   |                         |   | -      |                                    |   |   |                    |   |   |   |
|                           |   |                                          |    |   |                         |   |   |                                    |   |   |                    |   |   |   |
| Outstanding at end of year     |   |                                          | 254,204 |   |                         | $      | 13.25  |                                    |   |   | 9.1                     |   |   | $ | 508 |   |
|                           |   |                                          |    |   |                         |   |   |                                    |   |   |                    |   |   |   |   |   |
| Exercisable at March 31, 2011  |   |                                          | 8,972   |   |                         | $      | 13.25  |                                    |   |   | 0.4                     |   |   | $ | 18 |   |

| 11. | Income Taxes |
|-----|--------------|

----

| 12. | Recent Accounting Pronouncements |
|-----|----------------------------------|

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|                                                                    |   | Six Months Ended March 31, |    |
|-------------------------------------------------------------------------|--------|----------------------------|---------|
|                                                                    |   | 2011                       |    |   | 2010 |   |
|                                                                    |   | AverageBalance             |    |   | InterestandDividends |   |   | Yield/Cost |   |   | AverageBalance |   |   | InterestandDividends |   |   | Yield/Cost |   |
|                                                                    |   | (Dollars in thousands)     |    |
| Assets:                                                                 |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits with banks                                    |   | $                          | 3,971   |   |   | $ | 7 |   |   |   | 0.35 | % |   | $ | 3,170 |   |   | $ | 9 |   |   |   | 0.57 | % |
| Loans                                                                   |   |                       | 343,187 |   |   |   | 10,366 |   |   |   | 6.04 |   |   |   | 356,593 |   |   |   | 11,247 |   |   |   | 6.31 |   |
| Investment securities                                                   |   |                       | 98,920  |   |   |   | 2,485 |   |   |   | 5.02 |   |   |   | 43,624 |   |   |   | 1,440 |   |   |   | 6.60 |   |
| Mortgage-backed securities                                              |   |                       | 15,478  |   |   |   | 204 |   |   |   | 2.64 |   |   |   | 38,282 |   |   |   | 552 |   |   |   | 2.88 |   |
| Federal Home Loan Bank stock                                            |   |                       | 4,081   |   |   |   | 58 |   |   |   | 2.84 |   |   |   | 4,170 |   |   |   | 32 |   |   |   | 1.53 |   |
| Total interest-earning assets                                           |   |                       | 465,637 |   |   |   | 13,120 |   |   |   | 5.64 |   |   |   | 445,839 |   |   |   | 13,280 |   |   |   | 5.96 |   |
|                                                                    |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets                                             |   |                       | 43,088  |   |   |   |   |   |   |   |   |   |   |   | 41,833 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                          | 508,725 |   |   |   |   |   |   |   |   |   |   | $ | 487,672 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and equity:                                                 |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                            |   | $                          | 65,632  |   |   | $ | 177 |   |   |   | 0.54 |   |   | $ | 61,178 |   |   | $ | 172 |   |   |   | 0.56 |   |
| Money market deposit accounts                                           |   |                       | 36,690  |   |   |   | 134 |   |   |   | 0.73 |   |   |   | 33,633 |   |   |   | 179 |   |   |   | 1.06 |   |
| Savings accounts                                                        |   |                       | 39,068  |   |   |   | 51 |   |   |   | 0.26 |   |   |   | 36,386 |   |   |   | 56 |   |   |   | 0.31 |   |
| Time deposits                                                           |   |                       | 200,527 |   |   |   | 1,685 |   |   |   | 1.68 |   |   |   | 200,636 |   |   |   | 2,142 |   |   |   | 2.14 |   |
| Total interest-bearing deposits                                         |   |                       | 341,917 |   |   |   | 2,047 |   |   |   | 1.20 |   |   |   | 331,833 |   |   |   | 2,549 |   |   |   | 1.54 |   |
|                                                                    |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings (1)                                                          |   |                       | 79,083  |   |   |   | 712 |   |   |   | 1.80 |   |   |   | 74,686 |   |   |   | 629 |   |   |   | 1.68 |   |
| Total interest-bearing liabilities                                      |   |                       | 421,000 |   |   |   | 2,759 |   |   |   | 1.31 |   |   |   | 406,519 |   |   |   | 3,178 |   |   |   | 1.56 |   |
|                                                                    |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing deposits                                           |   |                       | 29,983  |   |   |   |   |   |   |   |   |   |   |   | 26,056 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                                  |   |                       | 2,753   |   |   |   |   |   |   |   |   |   |   |   | 2,068 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                       | 453,736 |   |   |   |   |   |   |   |   |   |   |   | 434,643 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total equity                                                            |   |                       | 54,989  |   |   |   |   |   |   |   |   |   |   |   | 53,029 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                            |   | $                          | 508,725 |   |   |   |   |   |   |   |   |   |   | $ | 487,672 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                     |   |                       |    |   |   | $ | 10,361 |   |   |   |   |   |   |   |   |   |   | $ | 10,102 |   |   |   |   |   |
| Interest rate spread                                                    |   |                       |    |   |   |   |   |   |   |   | 4.33 | % |   |   |   |   |   |   |   |   |   |   | 4.40 | % |
| Net interest margin                                                     |   |                       |    |   |   |   |   |   |   |   | 4.45 | % |   |   |   |   |   |   |   |   |   |   | 4.53 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                       |    |   |   |   |   |   |   |   | 110.60 | % |   |   |   |   |   |   |   |   |   |   | 109.67 | % |

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|                                 |   | Six Months Ended March 31, 2011Compared toSix Months Ended March 31, 2010 |   |
|--------------------------------------|--------|---------------------------------------------------------------------------|--------|
|                                 |   | Increase (Decrease)Due to                                                 |   |   |   |   |
|                                 |   | Rate                                                                      |   |   | Volume |   |   | Net |   |
|                                 |   |                                                                      |   |   | (In thousands) |   |   |   |   |
| Interest income:                     |   |                                                                      |   |   |   |   |   |   |   |
| Interest-bearing deposits with banks |   | $                                                                         | (7     | ) |   | $ | 5 |   |   | $ | (2 | ) |
| Loans                                |   |                                                                      | (469   | ) |   |   | (412 | ) |   |   | (881 | ) |
| Investment securities                |   |                                                                      | (243   | ) |   |   | 1,288 |   |   |   | 1,045 |   |
| Mortgage-backed securities           |   |                                                                      | (43    | ) |   |   | (305 | ) |   |   | (348 | ) |
| Other interest-earning assets        |   |                                                                      | 26     |   |   |   | - |   |   |   | 26 |   |
| Total interest-earning assets        |   |                                                                      | (736   | ) |   |   | 576 |   |   |   | (160 | ) |
|                                 |   |                                                                      |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                    |   |                                                                      |   |   |   |   |   |   |   |   |   |   |
| Deposits                             |   |                                                                      | (582   | ) |   |   | 80 |   |   |   | (502 | ) |
| Borrowings (1)                       |   |                                                                      | 46     |   |   |   | 37 |   |   |   | 83 |   |
| Total interest-bearing liabilities   |   |                                                                      | (536   | ) |   |   | 117 |   |   |   | (419 | ) |
| Net increase in net interest income  |   | $                                                                         | (200   | ) |   | $ | 459 |   |   | $ | 259 |   |

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|                                                                    |   | Three Months Ended March 31, |    |
|-------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                    |   | 2011                         |    |   | 2010 |   |
|                                                                    |   | AverageBalance               |    |   | InterestandDividends |   |   | Yield/Cost |   |   | AverageBalance |   |   | InterestandDividends |   |   | Yield/Cost |   |
|                                                                    |   | (Dollars in thousands)       |    |
| Assets:                                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits with banks                                    |   | $                            | 3,954   |   |   | $ | 4 |   |   |   | 0.40 | % |   | $ | 2,605 |   |   | $ | 3 |   |   |   | 0.46 | % |
| Loans                                                                   |   |                         | 343,247 |   |   |   | 5,093 |   |   |   | 5.94 |   |   |   | 355,938 |   |   |   | 5,561 |   |   |   | 6.25 |   |
| Investment securities                                                   |   |                         | 105,897 |   |   |   | 1,270 |   |   |   | 4.80 |   |   |   | 49,102 |   |   |   | 744 |   |   |   | 6.06 |   |
| Mortgage-backed securities                                              |   |                         | 14,449  |   |   |   | 117 |   |   |   | 3.24 |   |   |   | 36,958 |   |   |   | 272 |   |   |   | 2.94 |   |
| Federal Home Loan Bank stock                                            |   |                         | 4,049   |   |   |   | 30 |   |   |   | 2.96 |   |   |   | 4,170 |   |   |   | 15 |   |   |   | 1.44 |   |
| Total interest-earning assets                                           |   |                         | 471,596 |   |   |   | 6,514 |   |   |   | 5.53 |   |   |   | 448,773 |   |   |   | 6,595 |   |   |   | 5.88 |   |
|                                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-earning assets                                             |   |                         | 41,096  |   |   |   |   |   |   |   |   |   |   |   | 42,898 |   |   |   |   |   |   |   |   |   |
| Total assets                                                            |   | $                            | 512,692 |   |   |   |   |   |   |   |   |   |   | $ | 491,671 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and equity:                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                            |   | $                            | 64,246  |   |   | $ | 82 |   |   |   | 0.51 |   |   | $ | 63,094 |   |   | $ | 76 |   |   |   | 0.48 |   |
| Money market deposit accounts                                           |   |                         | 37,085  |   |   |   | 68 |   |   |   | 0.73 |   |   |   | 33,909 |   |   |   | 79 |   |   |   | 0.93 |   |
| Savings accounts                                                        |   |                         | 39,730  |   |   |   | 23 |   |   |   | 0.23 |   |   |   | 36,820 |   |   |   | 25 |   |   |   | 0.27 |   |
| Time deposits                                                           |   |                         | 202,575 |   |   |   | 813 |   |   |   | 1.61 |   |   |   | 200,994 |   |   |   | 1,023 |   |   |   | 2.04 |   |
| Total interest-bearing deposits                                         |   |                         | 343,636 |   |   |   | 986 |   |   |   | 1.15 |   |   |   | 334,817 |   |   |   | 1,203 |   |   |   | 1.44 |   |
|                                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings (1)                                                          |   |                         | 81,251  |   |   |   | 350 |   |   |   | 1.72 |   |   |   | 76,833 |   |   |   | 308 |   |   |   | 1.60 |   |
| Total interest-bearing liabilities                                      |   |                         | 424,887 |   |   |   | 1,336 |   |   |   | 1.26 |   |   |   | 411,650 |   |   |   | 1,511 |   |   |   | 1.47 |   |
|                                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing deposits                                           |   |                         | 30,562  |   |   |   |   |   |   |   |   |   |   |   | 24,951 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                                  |   |                         | 2,634   |   |   |   |   |   |   |   |   |   |   |   | 1,944 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                       |   |                         | 458,083 |   |   |   |   |   |   |   |   |   |   |   | 438,545 |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total equity                                                            |   |                         | 54,609  |   |   |   |   |   |   |   |   |   |   |   | 53,126 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity                                            |   | $                            | 512,692 |   |   |   |   |   |   |   |   |   |   | $ | 491,671 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                     |   |                         |    |   |   | $ | 5,178 |   |   |   |   |   |   |   |   |   |   | $ | 5,084 |   |   |   |   |   |
| Interest rate spread                                                    |   |                         |    |   |   |   |   |   |   |   | 4.27 | % |   |   |   |   |   |   |   |   |   |   | 4.41 | % |
| Net interest margin                                                     |   |                         |    |   |   |   |   |   |   |   | 4.39 | % |   |   |   |   |   |   |   |   |   |   | 4.53 | % |
| Average interest-earning assets to average interest-bearing liabilities |   |                         |    |   |   |   |   |   |   |   | 110.99 | % |   |   |   |   |   |   |   |   |   |   | 109.02 | % |

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|                                 |   | Three Months Ended March 31, 2011Compared toThree Months Ended March 31, 2010 |   |
|--------------------------------------|--------|-------------------------------------------------------------------------------|--------|
|                                 |   | Increase (Decrease)Due to                                                     |   |   |   |   |
|                                 |   | Rate                                                                          |   |   | Volume |   |   | Net |   |
|                                 |   |                                                                          |   |   | (In thousands) |   |   |   |   |
| Interest income:                     |   |                                                                          |   |   |   |   |   |   |   |
| Interest-bearing deposits with banks |   | $                                                                             | -      |   |   | $ | 1 |   |   | $ | 1 |   |
| Loans                                |   |                                                                          | (272   | ) |   |   | (196 | ) |   |   | (468 | ) |
| Investment securities                |   |                                                                          | (115   | ) |   |   | 641 |   |   |   | 526 |   |
| Mortgage-backed securities           |   |                                                                          | 31     |   |   |   | (186 | ) |   |   | (155 | ) |
| Other interest-earning assets        |   |                                                                          | 15     |   |   |   | - |   |   |   | 15 |   |
| Total interest-earning assets        |   |                                                                          | (341   | ) |   |   | 260 |   |   |   | (81 | ) |
|                                 |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                    |   |                                                                          |   |   |   |   |   |   |   |   |   |   |
| Deposits                             |   |                                                                          | (250   | ) |   |   | 33 |   |   |   | (217 | ) |
| Borrowings (1)                       |   |                                                                          | 24     |   |   |   | 18 |   |   |   | 42 |   |
| Total interest-bearing liabilities   |   |                                                                          | (226   | ) |   |   | 51 |   |   |   | (175 | ) |
| Net increase in net interest income  |   | $                                                                             | (115   | ) |   | $ | 209 |   |   | $ | 94 |   |

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|            |   | At December 31, 2010   |   |
|-----------------|--------|------------------------|--------|
|            |   | Net Portfolio Value    |   |   | Net Portfolio Value as a |   |
|            |   | Dollar                 |   |   | Dollar |   |   | Percent |   |   | Percent of Present Value of Assets |   |
| Change in Rates |   | Amount                 |   |   | Change |   |   | Change |   |   | NPV Ratio |   |   | Change |   |
|            |   | (Dollars in thousands) |   |
| 300bp           |   | $                      | 39,612 |   |   | $ | (19,944 | ) |   |   | (33 | )% |   |   | 7.96 | % |   |   | (329 | )bp |
| 200bp           |   |                   | 48,146 |   |   |   | (11,410 | ) |   |   | (19 | )    |   |   | 9.44 |   |   |   | (181 | )bp |
| 100bp           |   |                   | 55,479 |   |   |   | (4,077 | ) |   |   | (7 | )    |   |   | 10.64 |   |   |   | (61 | )bp |
| Static          |   |                   | 59,556 |   |   |   | - |   |   |   | - |   |   |   | 11.25 |   |   |   | - | bp |
| (100)bp         |   |                   | 62,165 |   |   |   | 2,609 |   |   |   | 4 |   |   |   | 11.60 |   |   |   | 35 | bp |

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|   | Item 1A. | Risk Factors |
|--------|----------|--------------|

| Period                                    |   | (a)Total number of shares (or units) purchased |    |   | (b)Average pricepaid per share(or unit) |   |    | (c)Total number of shares (or units) purchased as part of publicly announced plans or programs (1) |   |   | (d)Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs |   |
|-------------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------|--------|---------|----------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|
| January 1, 2011 throughJanuary 31, 2011   |   |                                           | — |   |                                    |   | — |                                                                                               |   |   | —                                                                                                                    |   |   |   | 74,752 |   |
| February 1, 2011 throughFebruary 28, 2011 |   |                                           | — |   |                                    |   | — |                                                                                               |   |   | —                                                                                                                    |   |   |   | 74,752 |   |
| March 1, 2011 throughMarch 31, 2011       |   |                                           | — |   |                                    |   | — |                                                                                               |   |   | —                                                                                                                    |   |   |   | 74,752 |   |
| Total                                     |   |                                           | — |   |                                    |   | — |                                                                                               |   |   | —                                                                                                                    |   |   |   | 74,752 |   |

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|   | 31.1 | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer |
|--------|------|-------------------------------------------------------------------|

|   | 31.2 | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer |
|--------|------|-------------------------------------------------------------------|

|   | 32.1 | Section 1350 Certification of Chief Executive Officer |
|--------|------|-------------------------------------------------------|

|   | 32.2 | Section 1350 Certification of Chief Financial Officer |
|--------|------|-------------------------------------------------------|

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|                          | FIRST SAVINGS FINANCIAL GROUP, INC.(Registrant) |                                  |
|-------------------------------|-------------------------------------------------|---------------------------------------|
|                          |                                            |                                  |   |
| Dated  May 13, 2011 | By:                                        | /s/ Larry W. Myers                    |   |
|                          |                                            | Larry W. Myers                        |   |
|                          |                                            | President and Chief Executive Officer |   |
|                          |                                            |                                  |   |
|                          |                                            |                                  |   |
| Dated  May 13, 2011 | By:                                        | /s/ Anthony A. Schoen                 |   |
|                          |                                            | Anthony A. Schoen                     |   |
|                          |                                            | Chief Financial Officer               |   |

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